Over COVID and even now, people have been really interested in starting up a side hustle. Luckily, the Canada Revenue Agency has a few easy tips to start things up.
David Nunes, a Spokesperson with the CRA mentioned it's very easy to start things up.
“If you're looking into starting a new self-employed business or a side hustle, getting started is a lot easier than what people may believe. Now for starters, on our website, you can find a checklist for what you need to know to get started with your new business.”
Some of the items that are on the checklist include:
Business income tax reporting
File a GST/HST return
When you need a business number or CRA program account
How to register for a business number or Canada Revenue Agency program accounts
According to Nunes, understanding if you need and when you need a GST number is a very important component
“If you either sell goods or services, you don't have to get a GST number or remit GST to the CRA until you make $30,000 in revenue in one quarter of the year, or in total for four consecutive quarters. But in some cases, depending on the industry, like a ride-sharing business owner, you do need to apply for a GST number right away," he said.
When it comes to claiming and expensing, there are very specific rules to what you can and cannot claim. Some things that could possibly be claimed include part of the cost of your motor vehicles, your marketing, your advertisements, insurance, and so much more.
“The number one tip I could give to a small business owner is to make sure you keep your books and records super organized, and to keep them for at least six years, just in case there is a need for a review."
Nunes mentioned if you're filing your tax returns, all you need to do is simply add an extra form where you will get to claim your revenues and your business expenses using any certified tax software that you know, really you could use.
For all you Albertans that are trying to earn a little extra spending money, and make sure you have everything you need, click this link.